Documents & Reports

Timor-Leste - Corporate Governance Case Studies (English)

Abstract

Kaebauk Investimentu No Finansas, SA (KIF) is the largest microfinance institution (MFI) in Timor-Leste, and it was originally known as Tuba Rai Metin (TRM) which translates to Stand Firmly on the Ground. TRM was launched in 2001 and registered as a separate...
See More +Kaebauk Investimentu No Finansas, SA (KIF) is the largest microfinance institution (MFI) in Timor-Leste, and it was originally known as Tuba Rai Metin (TRM) which translates to Stand Firmly on the Ground. TRM was launched in 2001 and registered as a separate MFI in 2002 under Catholic Relief Services. In March 2016, the organization’s name became KIF, as the Company completed its transformation from a Non-Governmental Organization (NGO) into an Other Deposit Taking Institution (ODTI), the first in the country. Today, it is regulated by the Central Bank and provides financial products to Timorese women and small businesses. With a nationwide presence across all 13 districts of Timor-Leste, KIF provides financial products, including credit, savings accounts and micro-insurance, to more than 12,000 clients (primarily women) through 20 branches and four field offices. KIF has endured two consecutive civil wars in 2006 and 2007 that saw 13 other MFIs shudder operations. Its goal is to extend its reach into even more remote regionsthrough branchless banking services. While it focuses primarily on supplying traditional microloans, it plans to expand into remittances, as well as non-financial offerings like agriculture and business development training, financial literacy classes and environmental services. KIF is also piloting an agricultural loan product that won’t require borrowers to repay until after their harvest.
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